The Securities and Exchange Board of India (SEBI) on July 05, 2023, issued an amendment to guidelines for the preferential issue and institutional placement of units by a listed InvIT.
The SEBI issued circular SEBI/HO/DDHS/DDHS/CIR/P/2019/143 dated November 27, 2019, and was subsequently revised.
The guidelines for preferential issues and institutional placement of units by listed InvITs stand modified as under:
• Clause 2 of Annexure II of SEBI Circular dated November 27, 2019, is modified as under:
“2. Pricing of Units The institutional placement shall be made at a price not less than the average of the weekly high and low of the closing prices of the units of the same class quoted on the stock exchange during the two weeks preceding the relevant date:
Provided that the InvIT may offer a discount of not more than five percent on the price so calculated, subject to the approval of unitholders through are the solution as specified in guideline 2.1.
Explanation: “relevant date” for the purpose of clauses related to institutional placement shall be the date of the meeting in which the board of directors of the manager decides to open the issue.
This circular shall be applicable with immediate effect.
[Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2023/113]
